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How are sponsors screened before their deal launches on the Marketplace?

 

CrowdStreet posts institutional-­quality commercial real estate investments with defined business plans from reputable and proven sponsors.

 

The following is a guideline of our screening criteria:

  1. Sponsor Vetting: First, we evaluate the commercial real estate developer or operator’s (aka the “sponsor’s”) background and track record to ensure that the sponsor has a demonstrated capability to execute their business plan and provide investors the highest degree of professionalism. This includes deep background checks on sponsor entities and principals using industry leading platforms – CrowdStreet uses CLEAR® | Thomson Reuters to conduct its background checks. In the event bankruptcies or lawsuits are discovered, satisfactory explanations are required prior to moving forward in the screening process.
  2. Asset Review: Second, we evaluate the sponsor’s proposed asset or fund to ensure that it aligns with the sponsors’ background and with Marketplace investor preferences. CrowdStreet analyzes assumptions pertinent to the feasibility of the business plan and performs sensitivity analysis to understand how the investment performs in a downside scenario.
  3. Offering Terms Review: Third, we review the terms of the proposed offering and associated documents against our “standard investor deal terms criteria” matrix and provide the results to the sponsor to either adjust to comply or reject any offering that does not match the criteria.

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Each sponsors’ investment offering is subjected to a 26-point objective review process by our experienced Investments Team to ensure both the Sponsor and the offering meet our strict marketplace requirements. We’re committed to only publishing institutional-quality commercial real estate investment offerings, while providing the transparency and tools you need to make smart investment decisions.